What's the Point of ICO Escrow?

[cahkalem]

Hi all,
did anyone see good example of ICO escrow?

here the thread about escrows
https://bitcointalk.org/index.php?topic=855778.0

and ICO's without escrow, is bad,,
because with escrow the funds of investors is protected

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[mudasarali43]

The point is Escrow system in ICO (Initial Coin Offering) is working like the third party and by using this system both buyer and seller are free from fraud the system provide the honesty of transactions.

[smartJEV]

Hey guys, is there any company which provides escrow for the ico? Looking for one with a good reputation.

[iblistenan]

ICO is better if have Escrow, but cross check Escrows credibility

[smartJEV]

ICO is better if have Escrow, but cross check Escrows credibility

Escrow will be a good option, if it will be any kind of company which is protected and insured, or kind of organisation. If the escrow is just one person, doesnt metter what is his reputation it is a huge risk. Im not talking only about scam, but somebody could happen with a person, he can be robed, sick, die.. Its absurd that a company (ico), can delegate all finance (sometimes it is millions) to one person! I think this can be idea for a project, to make some kind of decentralised escrow service.

[JohnRu]

Can anybody give a few examples of recently ended ICOs with escrows?

[smartJEV]

Can anybody give a few examples of recently ended ICOs with escrows?

We are making review for the ICOs, and I didnt saw it for a long time. Probably because of (read my previous post)

[Antivoid]

ICO is better if have Escrow, but cross check Escrows credibility

Escrow will be a good option, if it will be any kind of company which is protected and insured, or kind of organisation. If the escrow is just one person, doesnt metter what is his reputation it is a huge risk. Im not talking only about scam, but somebody could happen with a person, he can be robed, sick, die.. Its absurd that a company (ico), can delegate all finance (sometimes it is millions) to one person! I think this can be idea for a project, to make some kind of decentralised escrow service.

yes, escrow made the investors assured to participate in without worrying their money are abused by the team, its very common on the early years ico, but we can hardly see escrow recently, maybe blockchain are mutual than before, maybe the investors havent tasted bitter

[hua_hui]

ICO's are worthless. If you have such an amazing concept it shouldn't be hard to find actual investors and not some suckers who can put in $2 each from their last rupees.

Actually it is not as easy as you say. A lot of great ideas have try to raise funf by traditional means and they could only manage to get 400k to $1mil. However when they ico, they can get 10x or 20x the amount in one shot.

[smartJEV]

ICO's are worthless. If you have such an amazing concept it shouldn't be hard to find actual investors and not some suckers who can put in $2 each from their last rupees.

Actually it is not as easy as you say. A lot of great ideas have try to raise funf by traditional means and they could only manage to get 400k to $1mil. However when they ico, they can get 10x or 20x the amount in one shot.

You are right, to get funds from angels sometimes could be a huge headache. I think ICO and traditional fundraising both has disadvantages. One is too hard second is too easy. Lots of crap ICOs appears every day, thats why we created icocritic.org , to have another opinion and critical view to the ICOs. And yes its kind of bubble in ICO world right now, probably 99% of ICOs will not survive 5+ years. But that doesnt means people cant make money on them in short term. Also huge plus, that event when bubble will blow, some great tech companies could appear from this. Like when it was doccom bubble, we got Amazon and many more huge and good tech companies.

[Andrei@incremint]

Hey guys! I am part of the incremint.io team working on the smart contract based escrow solution. May not be - frankly - be as savvy as most of you in blockchain etc. But with my professional background, having worked as a lawyer on $hundred million / billion dollar M&As, I can tell you that escrow may be quite a useful tool to make sure buyer doesn't get screwed up. And more so in the ICO ecosystem. With so many scams, escrow could be the answer. Imagine in a Tezos situation $200mln out of $232 were escrowed. Backers would have received 85 cents on the buck back.

[GayOfThrones]

I mean, the dev team is eventually going to get access to the BTC at the end of the crowdsale, at which point they could just steal it all.

Actually in most of the ICO who will have escrow in middle have certain terms that will prevent devs from just running away scamming after ICO period. They need to deliver what they have promised in start to be able to get 100% of ICO investment and payments are made in parts to devs so that they will not run away and keep delivering updates and what is in their whitepaper.

It that for real? In this case and only in this case am escrow would make a sense for an ICO. Could you please name at least one ICO which has used an escrow in this way?

[buy-it]

I think the issue of whether Escrows can steal or Scam investors is not so pronounced, so far you actually make use of the well known ones in this regard. But I must bring back to memory lane that ICO with attractive patronage hardly made possible without the use of Escrow during White paper development and preparedness. So, escrow  standing between Developers and team management plays very vital or significant role which can never be under estimated.

[Andrei@incremint]

Unlikely that any ICO used as escrow mechanism we are offering: escrow both in crypto and fiat (if selected by ICO issuers to avoid FX exposure). Besides, the release mechanism we are building doesn't really make us a middleman. Backers will be voting on ICO issuer's milestone performance.

Escrow could have been done on a multisig wallet basis but that's not really an escrow from many perspectives, including personal safety of a signatory - someone holding a key to, say, a $10m escrow wallet may prefer to keep his identity hidden from the community. That creates a different risk - colluding and running away with money.

[natasha-lev]

Escrow is a third party that monitors money costs and cash flows of money raised during ICO.
Meaning that Escrow is a sort of protection from scum and useless wastes of money.

[3months18w]

So, lets say you've developed a new altcoin and you're going to do an ICO. How does escrow protect coin purchasers? I mean, the dev team is eventually going to get access to the BTC at the end of the crowdsale, at which point they could just steal it all.

ICO escrow is out of date, and time told the truth.In case of escrow running away , don't think about this.

[Andrei@incremint]

Escrow is a third party that monitors money costs and cash flows of money raised during ICO.
Meaning that Escrow is a sort of protection from scum and useless wastes of money.

We at incremint, are not planning to monitor operational and capex activity of an ICO issuer but yes, we will be protecting investors from projects that raise cash on mere promises and then failing to deliver on actual product. Investors may vote in favour of payback. Obviously, the mechanism we are building is meant to be balanced. Serious ICO sponsor will propose milestones it plans to abide by. Moreover, deadlines could be postponed by vote too. But no delivery means payback to backers intimately.

[Andrei@incremint]

So, lets say you've developed a new altcoin and you're going to do an ICO. How does escrow protect coin purchasers? I mean, the dev team is eventually going to get access to the BTC at the end of the crowdsale, at which point they could just steal it all.

In my opinion, once a product, altcoin in this case, has been developed there is no logic in using escrow. The developer should receive all the raise upon development. Escrow may be needed throughout a development stage to essentially incentivise the developer to complete the project before it gets all the ICO-raised funds.

[PeterKh]

"Escrow" by itself is just a word, like for example, the word "book". There can be a shitty book or a great one. Same with escrow. We at Incremint are working on bringing the best product to the market. One that combines our legal experience with a solid technical solution. There will not be an issue of escrow agent running away. Real people with real reputation at stake plus maximum transparency of the terms and code.

Thanks!
P

[Vazil]

What if a team had already released MPV before ICO starts and needs all funds (which will be raised during ICO) to finish the development.
Is, in that case, having an escrow agent would be a necessary factor (for people) to contribute?